ISLAMABAD: Global trader Vitol on Monday placed the best offers for four of six cargoes of liquefied natural gas (LNG) sought by the country in December, a source at Pakistan LNG Ltd (PLL) said.

Vitol offered 16.9720 per cent, 16.5513pc, 15.9759pc and 15.8761pc of the price of Brent crude — known as a slope rate — for four deliveries in December, said the source.

The lowest offers for the two other cargoes were won by Trafigura and Socar which offered Brent crude slope rates of 16.9870pc and 16.8403pc respectively.

Slope rates provide a price indication for the opaque spot LNG market.

The delivery windows for Vitol’s shipments are Dec. 13-14, Dec. 18-19,

Dec. 24-25 and Dec. 30-31. The windows for Socar and Trafigura are Dec. 3-4 and Dec. 8-9.

Last month the country invited bids for a record six cargoes of LNG from the spot market for December, with authorities predicting a surge in the gap between demand and supply of gas in the winter.

Pakistan has a 15-year LNG purchase deal with Qatar to buy 3.75 million tonnes of LNG per year for 15 years to 2030, but it regularly taps the spot market.

It also has a five-year import deal with commodity trader Gunvor and a 15-year agreement with Eni.

Published in Dawn, November 3rd, 2020